Short selling means you sell stocks you don't have, with the promise of buying them later, with a hard deadline.
If the stock goes down, you will end up buying them later, cheaper, than you "sold" them right now.
But if the share price rise, you HAVE to buy them at a higher price.
Because GameStop was expected it to go bankrupt (and share price go to zero, essentially), some investing companies have shorted a lot of their stock. (Sold stock they didn't have, expecting to buy them later at 0$, and keeping the difference.)
But now a shitload of people (or something) bought actual stock at 8ish$, making the stock go UP a shitload to 300+$
This means the people who sold a shitload (shorted) at 8$, will be stuck, this friday, buying it at 300$+. Since they probably sold thousands of share, they'll have to pay thousands times 300$ to buy them back, and they HAVE to.
So, they're going bankrupt themselves.
Well, I mean, IF the market is shrinking, and IF the market is responding only to actual market change, and IF some people want to buy carrots, and you don't have carrots, and you go "I'll get you carrots tomorrow, they're 20$, as you can see by the current price" and the next day you go buy them, and the price dropped to 10$, and you get to keep the difference ... then yeah, it can work.
IF you are certain the market is going down.
If you're actually betting in a market where the value can be manipulated, and you lose, and then complain that the people doing the manipulations aren't your people, so it's unfair ... well, then, they can go suck a fuck, they knew what they were getting into, they're professionals, no? ;-)
Besides, don't they have insurance for these kinds of thing? If they wanted to do something risky, without insurance, well, that's on them.
Landis had a hell of a run, from Animal House to Beverly Hills cop. Then he fell off the cliff with Blues Brothers 2000, and just never got back to that level.
Short selling means you sell stocks you don't have, with the promise of buying them later, with a hard deadline.
If the stock goes down, you will end up buying them later, cheaper, than you "sold" them right now.
But if the share price rise, you HAVE to buy them at a higher price.
Because GameStop was expected it to go bankrupt (and share price go to zero, essentially), some investing companies have shorted a lot of their stock. (Sold stock they didn't have, expecting to buy them later at 0$, and keeping the difference.)
But now a shitload of people (or something) bought actual stock at 8ish$, making the stock go UP a shitload to 300+$
This means the people who sold a shitload (shorted) at 8$, will be stuck, this friday, buying it at 300$+. Since they probably sold thousands of share, they'll have to pay thousands times 300$ to buy them back, and they HAVE to.
So, they're going bankrupt themselves.
Ah, thank you. I’m smart now
You explained this very well. Now most people should understand what is going on.
Imagine being in the room when the genius who came up with that burst in.
"I have an AWESOME idea!!! You can sell stocks...get ready for it...that you don't even own!!!"
BRILLIANT!!!!!
Well, I mean, IF the market is shrinking, and IF the market is responding only to actual market change, and IF some people want to buy carrots, and you don't have carrots, and you go "I'll get you carrots tomorrow, they're 20$, as you can see by the current price" and the next day you go buy them, and the price dropped to 10$, and you get to keep the difference ... then yeah, it can work.
IF you are certain the market is going down.
If you're actually betting in a market where the value can be manipulated, and you lose, and then complain that the people doing the manipulations aren't your people, so it's unfair ... well, then, they can go suck a fuck, they knew what they were getting into, they're professionals, no? ;-)
Besides, don't they have insurance for these kinds of thing? If they wanted to do something risky, without insurance, well, that's on them.
This made me laugh, but now I want to cry because someone actually did this in real life.
Watch "Trading Places" with Eddie Murphy. This is exactly what they did to the Dukes.
Fuck me. I just watched this at new years ( a tradition) and for the first time i understand what happened at the end....
Thanks for tying a bow on that for me.
I didn't understand it for years, either, but once I started educating myself on how markets work, especially commodities, it made sense.
I'm just excited to be able to explain it to my wife tonight! lol
Great movie. They don’t make them like that anymore. 😞
Landis had a hell of a run, from Animal House to Beverly Hills cop. Then he fell off the cliff with Blues Brothers 2000, and just never got back to that level.
Agreed. I’m hoping coming 2 America won’t be a complete woke show.
Basically Trading Places? Eddie Murphy movie?